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At the start of each week, I like to look at ASIC's short position report to find out which shares are being targeted by short sellers.
This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn't quite right with a company.
With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:
- Paladin Energy Ltd (ASX: PDN) is the most shorted ASX share with short interest of 16.3%. This is up week on week. Short sellers appear to be betting against a successful ramp up of the Langer Heinrich Mine project and the emergence of a uranium bull market.
- Boss Energy Ltd (ASX: BOE) has seen its short interest fall week on week again to 14.1%. Short sellers have been closing positions following a stronger than expected operational performance.
- Mineral Resources Ltd (ASX: MIN) has short interest of 13.8%, which is flat week on week. Weak commodity prices and a precarious balance sheet appear to be behind this.
- Pilbara Minerals Ltd (ASX: PLS) has seen its short interest rise to 13.7%. This appears to have been driven by increasing lithium supply from Africa, which is expected to hold down lithium prices for some time to come.
- Liontown Resources Ltd (ASX: LTR) has short interest of 12.6%, which is flat week on week again. This lithium miner is also struggling with low battery materials prices.
- IDP Education Ltd (ASX: IEL) has 11.8% of its shares held short, which is up week on week again. This language testing and student placement company's shares have been smashed this year after extremely tough trading conditions weighed on its performance.
- Silex Systems Ltd (ASX: SLX) has seen its short interest remain flat at 11.2%. It seems that short sellers are doubting that this uranium enrichment technology company will achieve its pivotal TRL-6 demonstration by the end of 2025 as planned.
- Polynovo Ltd (ASX: PNV) has 11% of its shares held short, which is up week on week. This medical device company's growth has been below expectations this year. And with a lofty valuation, short sellers appear to believe this is a recipe for big share price declines.
- Lifestyle Communities Ltd (ASX: LIC) has seen its short interest rise to 10.1%. Short sellers will have been celebrating last week after the Victorian Civil and Administrative Tribunal ruled against it, leading to a huge share price decline.
- Corporate Travel Management Ltd (ASX: CTD) has entered the top ten with short interest of 9.9%. Short sellers may believe that trade tariffs could negatively impact demand for corporate travel.
